Income Tax Department conducts searches in J&K and Delhi
On June 15, 2022, the Income Tax Department conducted a search and seizure operation at a renowned manufacturer and supplier of Jamawar Shawls, Pashmina, and Kashmiri Shawls. More than 15 locations in Srinagar, Anantnag, and Delhi were searched.
A substantial amount of incriminating evidences, including hard copy papers and digital evidences, were discovered and seized during the search operation. According to a preliminary examination of the confiscated documents, a significant amount of the sales were made in cash and were not documented in the usual books of account. The search also discovered that the Group has engaged in large-scale tax evasion through stock undervaluation and underreporting. In Delhi alone, unaccounted stock worth over Rs.4 crore has been discovered.
The corporation is also displaying exports from India to its numerous businesses in Saudi Arabia and the United Arab Emirates. However, it has been discovered that business is conducted in the UAE under the names of third parties, with an informal profit sharing arrangement.
The group was discovered to have made significant unexplained investments in a large number of immovable properties both in India and abroad. Investigations have also revealed the group’s involvement in a high-end hotel, which is not fully mentioned in the company’s ordinary books of account.
The search resulted in the seizure of almost Rs.46 lakh in unaccounted cash.
More research is being carried out.